Simulation-Based Analysis of the Bullwhip Effect under Different Information Sharing Strategies

Abstract

This paper describes the impact of two different information sharing strategies – decentralized and centralized information – combined with two inventory control policies – min-max and stock-to-demand inventory control – on the bullwhip effect. To investigate and measure this impact, simulation models are developed using the Arena 5.0 software package for a four-stage supply chain, consisting of a single retailer, wholesaler, distributor and manufacturer. The experiments with the developed models are described and the results are analyzed